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The impact of China's differential electricity pricing policy on power sector CO2 emissions

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  • Hu, Junfeng
  • Kahrl, Fredrich
  • Yan, Qingyou
  • Wang, Xiaoya

Abstract

This article investigates the impact of China's differential electricity pricing policy on power sector CO2 emissions using the logarithmic mean divisia index method. The differential pricing policy, intended to reduce energy intensity in manufacturing, is being implemented in eight electricity-intensive industries. The study finds that, during 2004–2009, the policy accounted for a drop of roughly 115TWh in electricity use, which amounted to a reduction of 82 million tons of CO2 emissions. The policy has been most effective in reducing electricity use in the nonferrous metal smelting and rolling industry, and least effective in the ferrous metal smelting and rolling industry. Because the differential pricing policy has had significantly different effects across industries, improving the policy's design and implementation going forward will require a more detailed understanding and analysis of how it can be better tailored to individual industries.

Suggested Citation

  • Hu, Junfeng & Kahrl, Fredrich & Yan, Qingyou & Wang, Xiaoya, 2012. "The impact of China's differential electricity pricing policy on power sector CO2 emissions," Energy Policy, Elsevier, vol. 45(C), pages 412-419.
  • Handle: RePEc:eee:enepol:v:45:y:2012:i:c:p:412-419
    DOI: 10.1016/j.enpol.2012.02.049
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    References listed on IDEAS

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    Cited by:

    1. Li, Qiang & Zhang, Wenjuan & Li, Huiquan & He, Peng, 2017. "CO2 emission trends of China's primary aluminum industry: A scenario analysis using system dynamics model," Energy Policy, Elsevier, vol. 105(C), pages 225-235.
    2. Chen, Xia & Wang, Li & Tong, Lige & Sun, Shufeng & Yue, Xianfang & Yin, Shaowu & Zheng, Lifang, 2013. "Energy saving and emission reduction of China's urban district heating," Energy Policy, Elsevier, vol. 55(C), pages 677-682.
    3. Zhou, Kaile & Yang, Shanlin & Shen, Chao & Ding, Shuai & Sun, Chaoping, 2015. "Energy conservation and emission reduction of China’s electric power industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 10-19.
    4. repec:eee:eneeco:v:67:y:2017:i:c:p:268-277 is not listed on IDEAS
    5. Lo, Kevin, 2014. "A critical review of China's rapidly developing renewable energy and energy efficiency policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 508-516.

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    Keywords

    Differential pricing policy; CO2 emissions; Power sector;

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